DEE Development Engineers Limited has informed the Exchange about the outcome of order of Hon'ble PSERC revising the Tariff for supply of electricity by its Wholly Owned Subsidiary M/s Malwa Power Private Limited from Rs. 3.50 per kWh to Rs. 5.227 per kWh with an annual escalation of 5% on variable Tariff.
DEEDEV · price
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The Punjab State Electricity Regulatory Commission (PSERC) has issued a final order determining the tariff for the 6 MW biomass power plant of DEE Development Engineers' wholly owned subsidiary, Malwa Power Pvt Ltd. The new tariff has been set at ₹5.224 per kWh for FY 2025-26, up from the interim rate of ₹3.50 per kWh. This represents an increase of approximately ₹1.724 per kWh. The order includes a fixed tariff of ₹0.97/kWh and variable tariff of ₹4.254/kWh with 5% annual escalation. The company estimates additional revenue recovery of approximately ₹5.80 Crores till date from the tariff differential. The tariff applies to the extended 10-year term after the plant's initial 20-year useful life period expired on April 26, 2025.
The revised higher tariff is positive for shareholders as it will boost revenue and profitability of the subsidiary, which flows to the parent company. The estimated ₹5.80 Crores additional recovery and ongoing higher rates with annual escalation improve the economics of the power project.